News

As we move through Autumn we see not just falling leaves but also many of the market’s preconceptions. As we expected, government bonds have had a terrible time as investors wakes up to wasteful and unsustainable spending by profligate governments. Many investors have therefore sought refuge in a handful of extremely expensive technology stocks, whose earnings have also started to slow. Historically, the market has relied on a traditional ’Santa rally’ into Christmas, but this remains very dependent on easy financial conditions and we are very much entering a new financial regime that may thwart that.